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TaxJar: Sales Tax Compliance for Modern Commerce

TaxJar helps e-commerce and retail businesses manage their US sales tax obligations. It is designed for teams that need to automate tax collection and filing across different states.

At a glance

Best for
Ecommerce stores, Small businesses, Mid-market companies, Multichannel retailers
Pricing
TaxJar offers a 30-day free trial. Paid plans include a Starter tier starting at $39/mo and a Professional tier starting at $99/mo, with costs scaling based on monthly order volume.
Key use cases
Multichannel sales tax collection, Automated tax remittance, Nexus monitoring, Exemption management
Integrations
Amazon, Shopify, WooCommerce, Stripe, CSV import
Official website
taxjar.com
Screenshot of TaxJar website

TaxJar is a cloud-based platform designed to handle the sales tax lifecycle for businesses selling across multiple channels. It supports sales tax calculations using address validation and rates for 11,000 jurisdictions.

The software is designed for small businesses and mid-market companies, particularly those in the retail, SaaS, medical, and food and beverage sectors.

Beyond calculations, the tool helps businesses monitor economic nexus thresholds and supports the filing and remittance process through its AutoFile feature. It also includes AI-driven categorization to assist with product taxability recommendations.

Buyers should confirm which plan aligns with their monthly order volume and whether they require a full-service filing solution or reporting tools, as features vary between the Starter and Professional tiers.

Key Features

Real-time tax calculations

Calculates sales tax at checkout using rooftop-level address validation and current rates.

AutoFile

Prepares and submits sales tax returns and remittances to registered states.

Nexus Insights Dashboard

Monitors sales tax exposure and provides alerts when approaching nexus thresholds in new states.

AI-driven categorization

Provides product taxability recommendations and categorization via AI.

Sales tax reporting

Aggregates transaction data from multiple channels into state-by-state reports.

Use Cases

Multichannel sales tax collection

Calculating sales tax in real time for orders originating from different e-commerce platforms.

Automated tax remittance

Using AutoFile to submit returns to multiple jurisdictions to help reduce the risk of missed deadlines.

Nexus monitoring

Tracking sales and transaction volumes to determine when a business may have triggered an economic nexus obligation in a specific state.

Exemption management

Managing exempt customers, such as wholesale or government entities, to support correct tax collection.

Best For

Ecommerce storesSmall businessesMid-market companiesMultichannel retailers

Integrations

AmazonShopifyWooCommerceStripeCSV import

Pricing

TaxJar offers a 30-day free trial. Paid plans include a Starter tier starting at $39/mo and a Professional tier starting at $99/mo, with costs scaling based on monthly order volume.

FAQ

What is TaxJar used for?

TaxJar is used to automate the sales tax process, including calculating tax at checkout, monitoring state nexus thresholds, and filing returns.

Does TaxJar offer a free trial?

Yes, TaxJar provides a 30-day free trial with no obligation.

Which businesses can benefit from TaxJar?

It is designed for small to mid-market businesses, particularly those in e-commerce, retail, SaaS, and medical services.

What is the difference between the Starter and Professional plans?

The Professional plan offers more integrations (up to 10 vs 3), more annual AutoFile credits, and additional support options such as phone support and a dedicated onboarding specialist.

Source category: Finance & Accounting

Source subcategory: Tax Software

Software Type:

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